WASHINGTON (AP) – House Democrats on Monday proposed an additional $ 1,400 in direct payments to individuals, while Congress began assembling a $ 1.9 trillion COVID-19 aid package that accompanies the plan. President Joe Biden to fight the pandemic and revive a still impressive economy.
Democrats on the Pathways and Means Committee would expand tax credits for families with children, for low-income people and people who buy health insurance in markets created by the Affordable Care Act 2010. The panel, which plans to approve the measure by the end of the week, will also provide health benefits to some unemployed workers.
Less than three weeks into his presidency, Biden said that defeating the virus and resurrecting the economy are his top priorities. The coronavirus pandemic has killed more than 460,000 Americans, while the economy has lost 10 million jobs since the crisis began last year.
Ways and Means on Monday unveiled their part of the package – more than $ 900 billion, almost half of Biden’s entire plan – came with Democratic Congressional leaders hoping to get the legislation to the president for his signature in the middle March, when there is emergency unemployment benefits expire. Its schedule reflects the desire of Biden and the Democrats in Congress to show that they can respond quickly and decisively to the crisis, even though, as seems likely, they must undergo solid Republican opposition.
“While it is still our hope that Republicans will join us to do what is right for the American people, the urgency of the moment requires us to act without further delay,” said Ways and Means President Richard Neal, D-Mass.
Texas Representative Kevin Brady, the top Republican on that committee, criticized Democrats for carrying out the massive “no bipartisan commitment” measure He said the Republican Party wants to focus on vaccine distribution and more targeted relief for workers, families and small children companies – essentially foreseeing the amendments that Republicans are expected to propose during committee votes this week, some of which may win Democratic support.
Democrats on the House Education and Work Committee also previewed their plans on Monday. Its $ 350 billion package includes $ 130 billion to help schools reopen safely, $ 40 billion for colleges affected by the pandemic, and a plan to gradually raise the federal minimum wage to $ 15 an hour. The increase in the minimum wage faces an escalation and even Biden admitted that he probably will not survive.
The Financial Services Committee’s proposal includes $ 50 billion to help the Federal Emergency Management Agency deal with the costs of the pandemic, plus $ 25 billion for struggling homeowners and people at risk of homelessness. The expenses of the Transport and Infrastructure Committee would include donations of US $ 30 billion to public transportation agencies in difficulty with drastically reduced passenger numbers.
Democrats have only a narrow majority in the House and Senate. In addition to the Republican opposition, which may be unanimous, Democrats will have to balance the party moderates who worry about a package going too far and progressives eager to push Biden as far to the left as possible.
On a potential battleground within the party, Democrats of means and methods have proposed limiting the total payout to $ 1,400 for individuals earning $ 75,000 or less, and phasing them out until they finish completely at $ 100,000. Couples who earn up to $ 150,000 would be entitled to $ 2,800 in aid payments, which would gradually decrease and disappear entirely for those who earn $ 200,000.
The income levels at which people qualify for direct payments have caused disagreements among Democrats, with moderates arguing that aid should be targeted more specifically at those most in need. Biden said he would not allow payments per person to fall below $ 1,400, but indicated flexibility in income limits.
“There is a discussion now about what that limit will look like. A conclusion has not been finalized, ”said White House press secretary Jen Psaki.
Congress approved direct payments of $ 600 per person in December. The additional $ 1,400 would raise the total to $ 2,000. Democrats have been looking for that amount for months, and she won the support of then President Donald Trump during his unsuccessful re-election campaign, despite opposition from many Republicans in Congress.
The Ways and Means proposal would increase emergency unemployment assistance to $ 400 a week from its current $ 300. The benefits would last until August 29, instead of March 14 as now scheduled.
The plan would combat child poverty by increasing the child tax credit for families for one year. Now, with a maximum of $ 2,000 per year, it would increase to up to $ 3,600 per child under 6 and up to $ 3,000 for those under 17 years of age. Credit payments would be made on a monthly basis, even for families that are not required to pay federal income tax – a change from current policy.
The bill also offers several ways for people to obtain and maintain health insurance, including an initial test of Biden’s promise to build on Obama’s health law.
One section would sweeten the subsidies provided by former President Barack Obama’s health bill. The Biden administration has already announced a special three-month subscription period for ACA coverage starting next Monday. The most generous financial assistance in the House project would be available for this year and the next.
The bill would also cover 85% of the cost of premiums for workers who try to preserve their work-based health insurance after being fired. A federal law known as COBRA already allows them to temporarily maintain their former employer’s health insurance, but they usually have to pay prohibitively high premiums. Assistance will be available until September 30.
For childless workers, the plan proposes a significant expansion of the income tax credit for work – a refundable credit currently claimed by taxpayers who earn an average of $ 20,000 a year. The EITC is seen by its proponents as an important anti-poverty tool for workers.
Legislation requires that the maximum credit for childless workers be almost tripled and for broader eligibility.
The details of the projects were announced in a report by the non-partisan Congressional Budget Office that stated that raising the minimum wage to $ 15 an hour would increase unemployment, while increasing the wages of millions of workers.
Progressives like Senator Bernie Sanders, I-Vt., Author of the minimum wage legislation, want Democrats to fight for it now. He faces opposition from the Republican Party and some moderate Democrats fearing it will hurt small businesses during the pandemic.
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Associated Press writers Marcy Gordon in Washington and Collin Binkley in Boston contributed to this report.